On Wednesday morning, MPs in the Chamber of Deputies debated a series of measures aimed at strengthening the financial centre, including regulations for crypto assets, non-double-taxation agreements, and ELTIF funds.
A key focus of the session was the introduction of a legal framework for crypto assets, which governs their issuance, authorisation, and the provision of related services. The bill was passed with 58 votes in favour and two abstentions. The framework implements a series of EU regulations and directives, with Minister of Finance Gilles Roth emphasising that it provides “flexibility, oversight, and protection” for the sector.
MP Diane Adehm of the Christian Social People’s Party (CSV) highlighted the importance of diversifying the financial centre while acknowledging the stricter oversight now exercised by the Financial Sector Supervisory Commission (CSSF), which has been granted enhanced sanctioning powers. MP André Bauler of the Democratic Party (DP) underscored the “strategic importance” of swiftly implementing these new measures to bolster the financial centre’s potential.
The Alternative Democratic Reform Party (ADR) also supported the bill, with MP Fred Keup stating, “If the ADR can support the financial centre, then we will do that, of course.”
However, Keup noted that he shared some reservations expressed by the Luxembourg Socialist Workers’ Party (LSAP), which voted in favour of the bill but raised concerns about the “risky” and “volatile” nature of crypto assets. The LSAP argued that the lack of transparency regarding the underlying assets and entities behind cryptocurrencies poses significant risks to investors.
The debate took a slightly contentious turn when Pirate Party MP Marc Goergen challenged LSAP MP Franz Fayot, asking whether he would also advise against investing in traditional shares.
Fayot responded by pointing out that traditional shares are subject to strict regulatory requirements, such as the filing of prospectuses that provide detailed information about the underlying assets and business models of companies. He contrasted this with the opaque nature of cryptocurrencies and sarcastically invited Goergen to explain the underlying assets of cryptocurrencies to the Chamber. Goergen did not respond.
The other Pirate Party MP, Sven Clement, did not engage in the earlier debate but instead focused on welcoming the new legal framework for crypto assets, particularly its provisions on liability distribution. Clement emphasised the importance of clear rules, especially in light of the FTX financial fraud scandal, where billions were lost “not due to technology or speculation” but because of “fraudulent practices.”
Clement also praised the new regulations for addressing “pump and dump” and “rug pull” schemes, where developers issue coins or tokens, collect investments, and then abandon the project, leaving investors with worthless assets. He noted that such practices have long been outlawed in traditional financial markets. As an example, Clement referenced US President Donald Trump’s recent issuance of “let’s not call it a shitcoin, but a memecoin.”
Minster of Finance Gilles Roth echoed concerns raised earlier by LSAP MP Franz Fayot, stressing the importance of financial education and commending the CSSF for its efforts in this area over the past years. Responding to questions from Green Party (Déi Gréng) MP Sam Tanson about whether the CSSF has sufficient resources, Roth assured that the CSSF has been a pioneer in crypto asset expertise for over a decade.
The two MPs from the Left Party (Déi Lénk), David Wagner and Marc Baum, did not participate in the debate on crypto assets and ultimately abstained during the vote.
Minister Roth also shared positive developments from Luxembourg’s financial centre during the parliamentary session, revealing that 60 European Long-Term Investment Funds (ELTIF) have been established in the EU within the first 20 days of the year–40 of which chose Luxembourg as their base. ELTIF funds are designed to support long-term investments in infrastructure projects.
MPs also approved a new non-double-taxation agreement, this time with Moldova. Minister Roth emphasised the importance of such agreements, describing them as “very useful” for facilitating international business operations for banks, funds, and insurance companies. With the addition of Moldova, Luxembourg now has non-double-taxation agreements with 90 countries.
Roth also highlighted that four more agreements are in the pipeline, with Colombia, Oman, Kenya, and Australia. Notably, he pointed out that negotiations with Australia have been ongoing since 2010, stressing the need to finalise the deal. “After all, Australia is a big country,” Roth remarked.
Full report by RTL Télé (in Luxembourgish)
